The project will develop 2,000 acres of land

Communities Minister Stewart Maxwell revealed the money was being made available for the Clyde Gateway scheme.

The 15-year project aims to develop 2,000 acres of land in the east end of Glasgow and areas of South Lanarkshire.

A total of �5m is earmarked for the scheme this year and a further �57m will be paid between 2008 and 2011.

Speaking as he visited Rutherglen, one of the areas set to benefit from the project, Mr Maxwell said: "The proposals for the area are very ambitious and have the potential to bring about lasting positive benefits, including new housing and infrastructure, jobs, retail and leisure facilities."

Mr Maxwell visited the area with Glasgow City Council leader Steven Purcell and Chris Thompson, South Lanarkshire Council's chair of enterprise resources.

This initiative will have a life-changing impact for the people of the east end of Glasgow Steven Purcell Glasgow City Council leader

Glasgow City Council has also approved plans for an urban regeneration company (URC) to be set up to take the project forward.

The minister said the funding should serve as the "springboard" for the transformation of the area.

The first phase of the work will be in Shawfield, where it is intended to create a business area of one million square feet, and Dalmarnock, which is earmarked for residential development under the plans.

Mr Purcell said: "This initiative is all about people - it's about getting people in this part of the country back into the workforce and enhancing their confidence and ambition.

"Coupled with the work we will be doing to prepare for the 2014 Commonwealth Games, this initiative will have a life-changing impact for the people of the east end of Glasgow, by addressing the issues of poverty, low educational attainment and poor health."